Investing.com -- Atlanta Federal Reserve President Raphael Bostic expressed his concerns about inflation and its impact on the U.S. economy during a recent interview on CNBC. Bostic, who plays a significant role in the U.S. central banking system, mentioned his worry about the inflation aspect of the Federal Reserve’s mandate.

Bostic also commented on the potential implications of a U.S. downgrade, suggesting it could lead to a ripple effect throughout the economy. The statement followed a late Friday downgrade of the U.S. sovereign rating by Moody’s.

He emphasized the need for patience in the current economic climate, advising that it could take three to six months to see how the uncertainty settles.

The Atlanta Fed President also addressed the ongoing tariff situation, suggesting that if the transition period is prolonged, it could impact consumer behavior. Bostic noted that tariffs on China remain economically significant, and as things become more expensive, it could affect investment decisions.

Interestingly, Bostic hinted at the possibility of a rate cut this year, stating that he is leaning more towards one rate cut within the current year. Despite the economic challenges, Bostic assured that the Treasury markets are still functioning quite well. He also clarified that he has not heard any significant news about imminent large layoffs.

As a key figure in the U.S. central banking system, Bostic’s comments provide insight into the current state of the U.S. economy and the potential monetary policy actions that could be taken in response to ongoing economic challenges.

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